GTA Stakeholders' Report - August 2023

A Message From Our Founders

Amidst the current climate of rising interest rates, we are thrilled to witness the Thornhill real estate market remaining robust and full of promise. With our prominent location, high-ranking school district, and easy access to all amenities, Thornhill continues to stand as an attractive and thriving community for all.

Life is constantly filled with changes, and we understand that timing the market to sell at its peak and buy at the lowest point isn’t always feasible. However, rest assured that we are here to navigate these transitions with you, making your moving process smooth and hassle-free. At Kirby Chan & Co., our unwavering commitment is to provide you with the finest personalized real estate experience possible. We take immense pride in crafting tailor-made plans that align perfectly with your unique needs and requirements.

Our primary goal is to ensure that you experience seamless freedom throughout your journey with us. Regardless of the market conditions, we promise to maximize the opportunities available to you, striving to achieve the best possible outcomes.

If you’re contemplating your next move, whether it’s an upgrade or a downsize, we encourage you to get in touch with us today. Together, we can explore the best options available and create a roadmap for your successful real estate venture.

Best regards,

Kirby and Carrie

Rising Interest Rates And Your Real Estate Investments

Canada’s economy is experiencing significant shifts. Last month, The Bank of Canada increased its overnight rate to 5%, the highest since 2001, during a period of persistent inflation. Inflation peaked at 8.1% and, although now trending downwards to 3.4%, it remains a hot topic. Rising service prices, linked to labour market tightness and rapid wage growth, are the current drivers of inflation.

How does this influence you as a homeowner?

High inflation generally means higher interest rates, affecting homeowners with mortgages and consumers with various debt forms. As interest rates increase, borrowing becomes more costly, which can lead to a cooling effect on the housing market by reducing demand for new mortgages. However, Canada’s housing market is experiencing robust consumption growth and persistent housing demand due to strong population growth from immigration.

Even though the housing market typically reacts to rate increases, it has shown resilience, with signs of picking up after a slowdown. The unexpected momentum can be attributed to the buffer of accumulated savings by many households since the pandemic began, which aids in supporting consumer spending.

Rising interest rates and inflation can seem intimidating, yet they are part of an economic cycle. Navigating these economic waves is manageable with accurate information and a good understanding of market trends.

Your home is not just a financial investment, but also a personal sanctuary that plays a role in your life’s story. These tough economic times can be challenging, and if you find yourself in a situation where you must sell your house due to increasing interest rates and inflation, we can offer compassionate assistance to help you get the best value for your home.

Thornhill Real Estate Market

Quarter 2 - 2022 vs 2023

The second quarter of 2023’s real estate scene in the Greater Toronto Area was vibrant. Despite a slight decrease in average home prices compared to 2022, sales were bustling across the community. Even with softer prices in Toronto and Vaughan, activity remains robust. Suburban areas like Markham and Richmond Hill see a small price increase and a surge in sales. The current market offers abundant opportunities for both buyers and sellers.